Asked by Andrew Lujan on May 03, 2024
Verified
What is the total period cost for the month under the absorption costing?
A) $24,200
B) $8,800
C) $58,000
D) $33,800
Total Period Cost
The sum of all expenses associated with operating a business during a specific accounting period.
Absorption Costing
An accounting method that includes all manufacturing costs (direct and indirect) in the cost of a product.
- Discern between variable costing and absorption costing by examining differences in period costs, per-unit costs, and net operating profit.
Verified Answer
VF
Victoria FadakoMay 07, 2024
Final Answer :
A
Explanation : 
Reference: CHO7-Ref9
Erie Corporation manufactures a single product that it sells for $35 per unit.The company has the following cost structure:
There were no units in inventory at the beginning of the year.During the year 30,000 units were produced and 25,000 units were sold.
Reference: CHO7-Ref9Erie Corporation manufactures a single product that it sells for $35 per unit.The company has the following cost structure:
There were no units in inventory at the beginning of the year.During the year 30,000 units were produced and 25,000 units were sold.
Learning Objectives
- Discern between variable costing and absorption costing by examining differences in period costs, per-unit costs, and net operating profit.
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